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Economic history
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- Early Foundations & Geographic Impact:
- The Agricultural Revolution and subsequent population growth were heavily influenced by geography, with Eurasia's east-west axis facilitating crop and animal diffusion.
- Europe's fragmented geography fostered political competition, trade, and innovation, contrasting with centralized states like China.
- Disease exchange, particularly the decimation of indigenous populations in the Americas via the Columbian Exchange, profoundly impacted early global interactions.
- Institutional choices (extractive vs. inclusive) significantly shaped long-term development outcomes, as theorized by Acemoglu, Johnson, and Robinson.
- Medieval Transformations:
- The Medieval Climate Anomaly (800-1350 AD) boosted agricultural yields and trade, leading to population growth and urban development.
- Feudalism structured medieval society, but agricultural innovations (three-field system, heavy plow) increased productivity.
- The Black Death (1347-1351) caused massive demographic decline, leading to labor shortages, higher wages, and a shift towards market economies in Western Europe, while reinforcing serfdom in the East.
- Age of Discovery & Global Reordering:
- Technological advancements in navigation propelled European exploration (late 15th-17th C), leading to global trade networks and colonial empires.
- The influx of New World resources (e.g., silver) caused inflation ("Dutch Disease") in Southern Europe, while China's internal focus limited its global influence despite early expeditions.
- Industrial Revolution & Economic Divergence:
- Britain's Industrial Revolution (1760-1830) was driven by an Agricultural Revolution, demographic shifts, infrastructure, and strong institutions (property rights, financial systems). Key innovations included textiles and steam power.
- The "Great Divergence" saw rapid industrialization in nations like the US and Germany (following the "Standard Model" of development), while countries like India, China, and Egypt struggled due to colonial policies, weak institutions, and external interference.
- The US surpassed Britain through abundant natural resources, a large integrated market, and widespread education.
- 20th Century Dynamics:
- Russia underwent forced industrialization and collectivization under the Soviet regime, achieving rapid growth but at immense human cost. Argentina experienced an export-led "Golden Age" but remained vulnerable.
- World War I devastated economies and led to "war economies." The Roaring Twenties' boom ended with the Great Depression, prompting governments to adopt interventionist policies (New Deal, developmental state).
- The Cold War fostered economic competition between capitalist (US/Western Europe, aided by Marshall Plan) and communist (Soviet bloc, Comecon) models.
- Japan's "economic miracle" (1950-1973) resulted from state-led reforms, education, and strategic export growth.
- The rise of neoliberalism (1970s oil crises) emphasized deregulation and privatization, while the Third Industrial Revolution and globalization transformed global production and trade.
- The collapse of the Soviet Union, the formation of the EU, and China's state-directed economic boom reshaped the modern global economic landscape, highlighting the continuous interplay of climate, technology, institutions, and demographics.
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